Retail branding concepts

1. Unit III
Concept of Brand - Brand functions - Brand Loyalty and
Equity - Brand Stretching and Extensions - Strategic Brand
Management Process - Identifying and establishing brand
positioning and values - Planning and implementing Brand
Marketing Programs - Measuring and interpreting Brand
performance.

2. CONCEPT OF BRAND
The word "brand" derives from the Old Norse "brandr" meaning "to
burn" - recalling the practice of producers burning their mark (or brand) onto
their products.
Brand is the "name, term, design, symbol, or any other feature that identifies one
seller's product distinct from those of other sellers." Initially, branding was
adopted to differentiate one person's cattle from another's by means of a
distinctive symbol burned into the animal's skin with a hot iron stamp and
was subsequently used in business, marketing, and advertising.
Eg: A modern example of a brand is Coca Cola which belongs to the Coca-Cola
Company.

4. BRAND AWARENESS
 Brand awareness refers to customers' ability to recall
and recognize the brand under different conditions and
link to the brand name, logo, jingles and so on to
certain associations in memory.
 It consists of both brand recognition and brand recall. It
helps the customers to understand to which product or
service category the particular brand belongs and what
products and services are sold under the brand name.
 It also ensures that customers know which of their
needs are satisfied by the brand through its products.
 Brand awareness is of critical importance since
customers will not consider your brand if they are not
aware of it.

6. BRAND FUNCTIONS
There are some functions of branding
1. It helps in product identification and gives
'distinctiveness' to the product.
2. Indirectly it denotes the quality or standards of a
product.
3. It eliminated imitation products.
4. It ensures legal rights on the products.
5. It helps in advertising and packaging activities.
6. It helps to create and sustain brand loyalty to
particular products.
7. It helps in price differentiations of products.

7. The use of brands has been central to marketing for more than
a century. The dominant logic has been “Build a brand, and
the world will beat a path to its door.” Long-standing brands
such as Marlboro, Coca-Cola, Xerox, IBM, and Intel are
considered to be among the world’s most valuable assets.
The three primary functions of brands
• NAVIGATION
Brands help consumers navigate all the choices in each
consumer category
• REASSURANCE
Brands communicate the quality of the product
• ENGAGEMENT
Brands use distinct imagery to create loyalty and to help
consumers identify with the brand

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9. BRAND EQUITY
A brand's power derived from the goodwill and name recognition that it has
earned over time, which translates into higher sales volume and higher profit
margins against competing brands.
The commercial value that derives from consumer perception of the brand name
of a particular product or service, rather than from the product or service itself.

11. BRAND LOYALTY
Brand loyalty is where a person buys products from the same manufacturer
repeatedly rather than from other suppliers.
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase
or otherwise continue using the brand and can be demonstrated by repeated
buying of a product or service, or other positive behaviors such as word of mouth
advocacy.
Customers may repurchase a brand due to situational constraints (such as
vendor lock-in), a lack of viable alternatives, or out of convenience. Such loyalty
is referred to as "spurious loyalty".
True brand loyalty exists when customers have a high relative attitude toward
the brand which is then exhibited through repurchase behavior.

12. Paswan
BRAND MANAGEMENT ISSUES
Product
Manager
Manufacturing
R&D
Legal
Fiscal
Market
Research
Salesforce
Publicity
Purchasing Packaging
Promotion
Services
Media
Advertising
Agency
Distribution

13. Brand EXTENSION
 Brand extension or brand stretching is a marketing
strategy in which a firm marketing a product with a
well-developed image uses the same brand name in
a different product category.
 The new product is called a spin-off. Organizations
use this strategy to increase and leverage brands.
 Brand Extension is the use of an established brand
name in new product categories. This new category
to which the brand is extended can be related or
unrelated to the existing product categories.
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14. Brand EXTENSION - EXAMPLES
A renowned/successful brand helps an
organization to launch products in new categories
more easily. For instance, Nike’s brand core
product is shoes. But it is now extended to
sunglasses, T – shirts, soccer balls, basketballs,
and golf equipments.
Similarly the case for FAB INDIA from home
furnishings and clothing to FMCG, Soaps,
Detergents, Food Products, etc
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15. Brand Extension – SUCCESS STORIES
 Instances where brand extension has been a success are-
 Wipro which was originally into computers has extended
into shampoo, powder, and soap.
 Mother Diary – no longer famous for Dairy Milk Only – but
for diary processed items like Ice-Creams, Yogurt, etc
BRITANNIA, TATA GROUP, ITC GROUP, UNILEVER GROUP –
BRAND EXTENSION FOR ENTIRE PRODUCT PORTFOLIO
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16. Brand Extension- FAILURE STORIES
Instances where brand extension has been a failure are-
 In case of new Coke, Coca Cola has forgotten what the core
brand was meant to stand for. It thought that taste was the
only factor that consumer cared about.
 Rasna Ltd. - Is among the famous soft drink companies in
India. But when it tried to move away from its niche, there
was little success. When it experimented with fizzy fruit
drink “Oranjolt”, the brand bombed even before it could
take off.
 Oranjolt was a fruit drink in which carbonates were used as
preservative. It didn’t work out because it was out of
synchronization with retail practices.
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17. 17
STRATEGIC BRAND MANAGEMENT
• Strategic brand management involves the design and
implementation of marketing programs and activities to
build, measure, and manage brand equity.
• The strategic brand management process is defined as
involving four main steps:
1) Identifying and establishing brand positioning and values
2) Planning and implementing brand marketing programs
3) Measuring and interpreting brand performance
4) Growing and sustaining brand equity

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STRATEGIC BRAND MANAGEMENT PROCESS
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTS
STEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance

19. Identifying and establishing brand positioning
• Brand positioning is at the heart of marketing strategy.
• Brand positioning : as the “act of designing the company’s
offer and image so that it occupies a distinct and valued place
in the target customer’s minds.
• Deciding on a positioning requires determining:
1. Who the target consumer is.
2. Who the main competitors are.
3. How the brand is similar to these competitors
(points-of-parity)
4. How the brand is different from these competitors.(points-of-
difference)
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20. Target Market
• Identifying the consumer target is important because
different consumers may have different brand knowledge
structures and thus different perceptions and preferences for
the brand.
• A market is the set of all actual and potential buyers who
have sufficient interest in, income for, and access to a
product. In other words, a market consists of all consumers
with sufficient motivation, ability, and opportunity to buy a
product.
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21. Market segmentation
• Market segmentation involves dividing the market into
distinct groups of homogeneous consumers who have
similar needs and consumer behavior and thus require
similar marketing mixes.
• Defining a market segmentation plan involves tradeoffs
between costs and benefits.
• Possible segmentation bases for consumer and
industrial markets
• Descriptive or customer-oriented
(what kind of person or organization is the customer)
• Behavioral or product-oriented
(how the customer thinks of or uses the brand or
product) clearer strategic implications.
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22. Criteria : Segmentation and Targeting
• Identifiability : Can segment identification be easily
determined?
• Size : Is there adequate sales potential in the segment?
• Accessibility : Are specialized distribution outlets and
communication media available to reach the segment?
• Responsiveness : How favorably will the segment respond
to a tailored marketing program?
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Accessibility
Size
Identifiability
Responsiveness

23. Nature of competition
 Not to be too narrow in defining competition
 Often, competition may occur at the benefit level rather than
the attribute level.
Ex: Baskin-Robbins VS frozen coffee drink, blended
frozen-fruit (Starbucks, TCBY, Daily Queen)
 Recognizing the nature of different levels of competition has
important implications for the desired brand associations.
Competitive frame of reference
• Once the appropriate competitive frame of reference for
positioning has been fixed by defining the customer
target market and nature of competition, the basis of the
positioning itself can be defined.
• Arriving at the proper positioning requires establishing
the correct points-of-difference and point-of-parity
associations.
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24. Points-of-Difference Associations
• Points-of-Difference (PODs) are attributes or benefits that
customer strongly associate with a brand, positive evaluate,
and believe that they could not find to the same extent with a
competitive brand.
• Brand associations can be broadly classified in terms of either
functional, performance-related considerations or abstract,
imagery-related considerations.
Points-of-Parity Associations
• Points-of-parity (POPs) are those associations that are not
necessarily unique to the brand but may in fact be shared with
other brands.
1. Category points-of-parity are those associations that
consumers view as being necessary to be a legitimate and
credible offering within a certain product or service
category.
2. Competitive points-of-parity are those associations designed
to negate competitors’ point of difference.
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25. Points of Parity VS Points of Difference
• To achieve a point of parity on a particular attribute or
benefit, a sufficient number of customers must believe that
the brand is “good enough” on that dimension.
• There is a “zone” or “ range of tolerance or acceptance”
with POPs
• Points of parity are thus easier to achieve than points of
difference.
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26. Positioning
• The optimal competitive brand positioning are
1. Defining and communicating the competitive frame of reference.
2. Choosing and establishing points of parity and points of
difference.
1. Defining and communicating the competitive frame of
reference
 A starting point is determine category membership which a
brand competes.
 Choosing to compete in different categories often results in
different competitive frames of reference and thus different
POPs and PODs.
 The preferred approach to positioning is to inform consumers
of a brand’s membership before stating its point of difference
in relation to other category members.
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27. 2. Choosing and establishing points of parity and
points of difference.(1)
• Choosing Points-of-Parity
Three main ways to convey a brand’s category membership :
• Communicating category benefits.
• Comparing to exemplars
• Relying on the product descriptor
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28. 2. Choosing and establishing points of parity and
points of difference.(2)
• Choosing Points-of-Difference
The two most important considerations :
• Desirability criteria : 3 keys
• Relevance
• Distinctiveness
• Believability
• Deliverability criteria : 3 keys
• Feasibility (actual or potential ability of the product to
perform at the level stated)
• Communicability
• Sustainability
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29. Defining and establishing brand values
• Core brand values are those set of abstract associations
(attributes and benefits) that characterize the 5 to 10 most
important aspects or dimensions of a brand.
• First step is to create a detailed mental map of the
brand.A mental map accurately portrays in detail all
salient brand associations and responses for a particular
target market.(When do you think of this brand,what
comes to mind?)
• Second step, brand associations are grouped into
categories according to how they are related.
Core brand value
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30. Planning & Implementing Brand Marketing
Program

31. Choosing Brand Elements to Build Brand Equity Choosing
Brand Elements Criteria for Choosing Brand Elements : The
following criteria should be met to choose relevant brand
elements such as:
• Memorability – Easily Recognized, Easily Recalled
• Meaningfulness – Descriptive, Persuasive
• Likability – Fun and Interesting, Aesthetically Pleasing
• Transferability – Within Cross Product Categories, Across
Geographical Boundaries and Cultures
• Adaptability – Flexible, Updateable
• Protectability – Legally Protected, Competitively Protected
Criteria for

32. Designing Marketing Programs to Build Brand Equity Designing
Marketing Programs to Build Brand Equity Planning &
Implementing Brand Marketing Programs
Product Strategy An efficient product strategy would ensure that
the product remains updated with the latest features, technology
and enhancements and has something extra to offer to the
customers.
Pricing Strategy An efficient pricing strategy helps companies to
best position themselves within the market. Designing Marketing
Programs to Build Brand Equity
Channel Strategy Channel Strategy Product Strategy Pricing
Strategy It involves developing go-to-market plans, educating
channel marketers or middlemen about products or services, and
motivating the members of the marketing channel to promote
products and services. Hence, marketing and sales alignment is
critical to an effective channel strategy.

33. Measuring and interpreting Brand performance.

34. Brand Equity Measuring Sources of Brand Equity:
Capturing Customer Mind-Set There Measuring &are two
methods that are used for measuring the sources of brand equity
or to Interpreting capture the customer's mind-set, which are as
Brand follows:
Performance Measuring
• Qualitative Research Techniques Comparative Outcomes of
Methods
• Quantitative Research Techniques Brand Equity Let us look at
each one in detail.
Quantitative Research Techniques Brand Value Chain Developing
Brand Equity Measurement & Management Establishing a
System Brand Equity Designing Brand Tracking Studies
Management System Holistic Methods